My life in the center of the world -- musings on my family, community (local, global, physical and virtual), people and more. Oh and of course, a few words on tech related start-ups, within the context of living in the ulimate start-up with humble goal of repairing the world. Venture backed by over 3,000 years of history, thought, culture, and angst.
By Jacob Ner-David

February 01, 2012

Recently I read through the biography of Steve Jobs, authored by the wonderful Walter Isaacson, CEO of the Aspen Institute (as you may know, I have the deep honor of being a Henry Crown Fellow of the Aspen Institute, and have had the unique pleasure of interacting with Walter over the past ten years, and greatly admire his ability to capture complex lives in written form). Walter takes the reader on a page-turning odyssey of the man Steve Jobs and the companies he created (Apple, Next, Pixar, and then Apple again). We are offered a rare glimpse into the life of one our generation’s most mythic figures.

As an owner back in 1986 of a first generation Mac , all the way to being the CEO of a company in 2012 developing a service running on the iOS platform, I did not need the biography to tell me that Steve Jobs had a gift for bringing technology to the masses. The question is, at what price? From the opening that Walter gives us into the life of Steve Jobs the man, not only the myth, I come away with a very bad taste in my mouth. While I knew that Jobs was a driven personality, it is only reading the book that I realize how much he sacrificed upon the alter of creating cool technology. As readers of the book or avid followers of Job “trivia” know, Steve Jobs the man fathered a child and then for almost ten years ignored that child, his daughter Lisa. Even after acknowledging her, and bringing her into his orbit, their relationship was not a happy one. While there are a few scenes in the book that tell us of Jobs ability to love family, you get the feeling that in the “family v. company” race there was never a doubt what would win.

My own father, who thank God is alive today and will remain so for many years to come, was one of the pioneers of the computer age, helping to create COBOL, building massive mainframe systems in the 60s and 70s, and helped create the forerunner of the internet in networks such as BITnet and Arpanet. But my father did not see the vision of a computer in every house that people like Steve Jobs (and of course Bill Gates) saw back in the 70s and 80s. My father felt that computers were tools, not toys. My father’s cohort were happy to leave computers in the hands of data processing centers, crunching difficult numbers in the pursuit of national defense, health systems, and in general making the world a better place, but from a “behind the scenes” paradigm. My father, before retiring to academia in 1970, created a start-up (yup, it’s in the blood) called Compumedic Controls, which harnessed powerful computing to help centralize medical records. Growing up my father was very present, although also very dedicated to his adopted persona of being a professor at a public university. And we (my sister and I) were very present in the professional life of my father (and mother, also an educator). He brought us to office many times, letting me play with the punch-card machines, teaching us basic programming skills. When my father had conferences, we often attended together with him and my mother. It was a lifestyle that treasured family, and integrated it into professional life. We did not feel a tension between the two paths, but rather an integrated approach to life.

No coincidence is it that Jobs adopted family name is all about the job, the workplace, the professional life – the side of oneself that is extremely ego driven. For Steve Jobs parents, their last name was a curiosity, for Steve it was destiny that the job would always come first, and would have primacy in his life. Isaacson does not tell us of a Steve Jobs lovingly showing off his kids at the office – what you hear about is a man cutting a family vacation short because of a defective antenna in the iPhone 4 (and not clear how cutting the vacation short helped that problem…). In fact, it was only reading the biography that I knew Jobs had kids at all! And this is one of the most high-profile tech leaders of the generation. I am not asking for people like Jobs to live out all of their life in the public eye – but on the other hand he was a role model, and along with great power comes great responsibility (as Peter Parker’s Uncle Ben so eloquently told him).

I know it is not cool to speak ill of the dead, and so I prefer to take step back, and analyze the clash between Job[s] and family from a more removed and also personal point of view. As a serial entrepreneur, I am often faced with needing to choose between another hour (or three ) of work, or spending time with kids, raising them, together with my life partner, Rabbi Dr. Haviva Ner-David, and also wider family circle, community, and the world. As the father of seven children, ranging in age from ten months to 18 years, those demands on my time are a daily challenge. But it is a challenge I relish. I don’t think one can “do it all” if the job demands operating at a Jobsian level of intensity -- almost necessarily means family will lose out – and that is a terrible example to set for the world. For me, it actually taints the products that Jobs created, knowing they are the result of a philosophy that so prized work and professional pursuits above family and community. No wonder that Steve Jobs never engaged in social change and/or philanthropy. In fact it was Bill Gates who brought forth a much healthier and ethical approach, understanding that technology and business success should be used for tikkun olam, repairing the world. Even someone like Warren Buffet, who does not feel he personally can contribute with his own skillset to fixing the world, had loudly announced that the bulk of his wealth will go to repairing the world, and has urged others to do so.

Recently there has been a rash of a new type of program for entrepreneurs and start-ups called accelerators. There are several well-known programs in the US, including Techstars and YCombinator. In Israel we have some new ones as well, including the Elevator (where I am a mentor). These are wonderful jump-starts for an entrepreneur, and I know I would have benefited greatly 17 years ago had I started out my entrepreneurial career going through such a program – heck, I am sure I would benefit today. These programs, however, were set up with one “type” of entrepreneur in mind – one who comes with no strings attached, no responsibilities outside of their start-up. It is expected that they go “all in,” devoting all their energy to making the start-up work. Most of these accelerator programs are for a three-four month period, cramming together an MBA like education, the networking that normally would take years of conferences, and intense brainstorming on a 24/7 pace.

On the side one is expected to whip together at least a working prototype if not a launch able product. Oh, and the expectation of the accelerator is that you can drop everything and physically be where the accelerator is located. In the US this could mean getting on a plane and locating yourself thousands of miles from where you live (there are Techstars in Boulder, Seattle, Boston, and New York – so there are some geographic options…). No provision is made for family inclusion, or support. The cash invested in base on a per-founder “living expenses” model, or as one program calls it, “beer money.” What is someone with kids to do? Just pick up and leave the family for 3-4 months? I haven’t see any discussion in the blogosphere around this point. For me it is glaring.

I recently heard about a new program for Israeli start-ups to introduce them to the hard charging environment of Silicon Valley. The program literally picks up the leadership of start-ups and houses them in together Palo Alto for three months (in a group home in Palo Alto, sounds a lot like a frat house). In order to participate in the program the CEO must be present in Palo Alto for the full three months (I can understand why – I just see it from the viewpoint of an entrepreneur with a life beyond the start-up). The program is wonderful, just what is needed for newbie and experienced entrepreneurs. But why 3 months straight? Why not think in advance of the father or mother of young children, the CEO with a sick parent, or some other type of life responsibility. Do we really want to exclude all of these people from the best programs? And more importantly, the lack of exposure of these issues leaves a hole in the training of CEOs in the making, and perpetuates the Jobsian example of complete dedication to “the job.”

I reject the idea that it is either Job or Family. I believe you can “have it all”—but with different rules and expectations. It will not be perfect, and there will be moments where one or the other wins out. But three months of taking a break from life is beyond the pale, it exceeds the red lines. For some it may be workable – but for many not, placing a strain on family that cannot be morally justified by the potential success of a start-up (remember, 9 out of ten start-ups fail, even if accelerators have better stats, there remains a good chance the start-up will not succeed). Where is the happy balance? I do not know how put my finger on the exact point along the spectrum. I just now that the life example of Steve Jobs is not the path to healthy family or soul. May he and his memory be blessed for the joy he did bring to the world, through Apple, Pixar, and then Apple again, and may we learn how to take the good and leave behind the not-so-good from the life lessons of Steve Jobs.

May 16, 2011

For the past five years I have served as the Managing Partner of Jerusalem Capital I, LP, a venture fund I willed into existence, helped and supported by partners, investors, and of course my family. Now I am in the process of winding that down – and rediscovering who I am and what I want to do with my time.

During the past five years Haviva and I welcomed two additional children into our lives (Mishael, who joined the family over three years ago, and most recently Shefa, born two months ago), continue to raise our other five children, moved from Jerusalem to Hanaton where we are helping establish a new community, and much more.

In parallel, in my role as seed stage investor, was part of the formation of six companies, two of whom are alive and making progress. The other 4 – victims of the statistics of start-up life. Yes, along the way there was 2008-2009, which was a good excuse for many failures, but those 4 might have failed regardless.

So where does that leave me? Well, I can genuinely say I still am very interested in technology, entrepreneurship, and the constant innovation that makes up the start-up ecosystem in Israel and around the world. I know that as a board member, I can add value. But I also know that at 42 years old – I still have the strength and endurance to do it again directly – to start something new. Even if I do manage to return capital with a profit from the fund, which remains a driving motivation for me, I would not raise another fund. For me, the VC business is a lot of talking about, not enough doing. And I am doer.

The most important message we try to import to our children is “be who you are.” Some might be familiar with the hasidic tale of Reb Zusha, who fears not being judged against the achievements of others, but rather being questioned in the world to come as to whether he was the best Reb Zusha.

I also try and remain open to new possibilities, and that together with realizing what I want to do led me to deciding to go back to my roots – yes, I am co-founding a start-up, where my role is CEO. We (my co-founders and I) are setting out this week to begin our formal fundraising, after giving the “idea” much thought. I am sure we will continue to shape and reshape our plans in light of feedback we receive from the venture community and our potential business partners.

I am excited to going back to being who I am -- a “start-up” guy. Coming together with people who have chosen to work with each other, exploring new ideas, challenging each other, and creating something from nothing.

There are no guarantees of success in this business, but definitely will be a fun ride, and I will be who I am.

I will keep you posted on my progress, but in light of so many changes, I am renaming and moving my blog, but will continue to cross-post for some time. Will notify of new blog very soon.

March 14, 2010

Thank goodness my kids allow me to be their "friend" on Facebook (in real life we are still working on it). This morning I experienced such a "gevalt" moment, I need to publicly thank Facebook.

My 11 year old daughter posted on her profile that on Monday we are going to court to finalize the adoption of our son Mishael (who has been with us for two years already...Israeli bureaucracy moves slowly). And then she added: "And I completely forgot he is adopted."

Would Meira tell me that directly? Maybe, but perhaps the medium of Facebook allows us to show our true "face." I am sure it has the opposite effect at times, but in this instance I think Meira allowed herself to express her true feelings.

Wow, I still have goose bumps. One of those moments when you realize the important things in life.

March 02, 2010

OK, so it's been some time since I have posted to my blog, but even that admission seems so archaic (in Internet time). These days one has the option of tweeting, Facebook status update, Facebook "note," good old email blast, etc. Of course, newspapers do still exist. And my wife, Rabbi Dr. Haviva Ner-David recently started a column in the Jerusalem Post weekend edition. But her articles also appear on-line. And she also writes a column in an on-line only publication called Zeek.

Can all of these options enter the mainstream? I don't think so. What will need to happen is a form of leveling, with Twitter and similar services acting as notification engines, Facebook as a semi-closed circle of "friends," and blogs staying what they were intended to be: "my" voice out into public domain. Blogs are essentially a diary exposed to the world. Some tend to use the medium for more professional reasons, others more personal, and some (like me) a combination.

In one of the companies I am involved in, AttracTV, we are starting to see this all come together. AttracTV developed a platform for "Vidgets," which are applications that run as overlay on video being streamed. Amongst the first vidgets we released were Twitter and Facebook applications. And we see the different usage patterns, around the same content, playing out in real time. We also operate our own proprietary chat application, which is a very closed community (only people watching that content).

But as we know, 99% of the population reads, listens, and watches. They do not create. Facebook has nudged those statistics a bit, and while FB have not released stats yet, I would guess less than 10% of FB users actually update their status on regular basis. Thus the key in moving forward is how do the 99% process the Tweets, FB status updates, blog postings, news flashes, etc. Jeff Pulver has over 350,000 followers to his tweets. How many read each one? (especially given at the rate that Jeff puts information/thoughts/opinions out there...). What does it mean to have 350,000 followers? I subscribe to Jeff's blog, but I couldn't deal with his never ending tweet stream, turned it off hours after I opened up my twitter account.

If Twitter is smart and wants to continue to be the channel they are, they will need to give the 99% of us the tools to manage the avalanche of information. I assume they (and hundreds of third party developers) are hard at work at it right now.

In the end, we will remain the same human beings we are right now. Most of us are passive, some of us are active. The active ones will seek out the best ways to make their voice heard.

December 15, 2009

This Friday morning is the celebration of the new month ("Rosh Chodesh") of Tevet, which as usual makes it a special day, when the days of holiday of Hanuka are raised to even higher level with the double celebration of Hanuka and the New Month. As on every Rosh Chodesh a dedicated group of women will gather at the remnants of the Second Temple (known as the "Western Wall" or at times the "Wailing Wall") to usher in the new month together, as they have been doing for 21 years. These women come in rain or shine, no matter what else is happening in the world or around them.

For close to 13 years my wife, Rabbi Dr. Haviva Ner-David was a very active member of this group. After we moved to the Galil 6 months ago she has not attended in person. But she will there this Friday morning, as a celebration of the holiday and as an act of solidarity with all women (and men) who seek to express their spirituality in ways other than the official ultra-orthodox position.

Below is a letter from a friend of ours, Rena Magun, which I think says it all, inviting all who can to eb physcially present at the Wall this Friday morning. I will be here in Hanaton, with some of our kids and meeting together with our fellow pioneers in building a new community, but with deep feelings and connections to Jerusalem, our home for 13 years and the heart of the Jewish people.

I pray that this Hanuka our ultra-orthodox brethren will realize that the Wall represents the destruction of the Temple and the Second Jewish commonwealth largely because of senseless hatred ("Sina'at Hinam") and the last thing we should be doing on Hanuka is fighting amongst ourselves, but rather respecting all the wonderful ways to be Jewish today.

As some of you know,
on Nov 18th a young woman named Nofrat Frankel was arrested (!) at
the Kotel for wearing a tallit. She was praying as part of the monthly Rosh
Chodesh gathering of Women at the Wall that has been going on for 21 years this
month. You can read more about their history and ongoing struggle with
the Israeli legal system at http://womenofthewall.blogspot.com/.

For me, a woman who
wears a tallit, Nofrat's arrest was frightening and deeply disturbing. On
the one hand, I long ago stopped relating to the Kotel religiously because I
feel so alienated as a woman when I pray there. On the other hand, how
can it be that almost all over the world, a woman can feel free to wear a
tallit, EXCEPT at the Kotel in Jerusalem,
the holiest of cities. The reason given is that the Kotel is considered
an Orthodox synagogue, and that people praying there must respect those
norms. What was once the small annoyance of an old woman giving you a
shawl to wrap around your shoulders or legs if you weren't modestly dressed,
has evolved over time into gender segregated entranceways (!), a complete ban
on groups of men and women praying together even way, way back in the Plaza,
and now an arrest for wearing a tallit.

THE KOTEL
DOES NOT BELONG TO THE ORTHODOX ESTABLISHMENT IN THIS COUNTRY. IT BELONGS TO
ALL JEWS.

On Friday morning,
Dec 18th, Rosh Chodesh Tevet, the 7th day of Chanukah, at
7:00 am,
Women of the Wall will be gathering to daven with their tallitot under their
coats. If enough women come, they will open their coats. Imagine if you will, what would happen if thousands of
women with tallitot came to join the davening…it is not an impossible
feat. If we all come out, it could easily happen.

For those of you who
don’t usually wear a tallit, consider doing so this once (and maybe afterwards
as well) as a statement of solidarity for the struggle for religious freedom
that these women have been waging for 21 years. After all, one day you or
your daughter might want to wear a tallit at the Kotel. Right now that is
impossible, and without your help it may remain impossible forever.

PLEASE
FORWARD THIS TO EVERYONE YOU KNOW WHO MIGHT COME OR HAVE FRIENDS WHO MIGHT COME.

I am sad to say I
have removed my contact info from the signature of this e-mail for fear of
reprisal from extremists.

August 26, 2009

This morning we went through the final hoop along the circus act known as conversion in Israel. As many of you know, we adopted our sixth child, Mishael Binyamin, almost 18 months ago. We have been winding our way through the bureaucracy of the Israeli social systems ever since. On top of all the obstacle courses set up for families who adopt, our journey was made even more special due to the fact that Mishael was not "born Jewish." Of course, what does it mean to be "born Jewish?" Nu, subject of postings to come.

The beginning of the process was an application to the Israeli formal conversion office, which actually is an arm of the Office of the Prime Minister. After many months of being ignored, finally we were granted an interview with the "Beit Din," or religious court, made up of three rabbinical judges. These days Mishael talks up a storm, then he was a little more reserved, as many one year olds are. So we were asked a series of questions, we gave the rights answers, next stop, which was to wait for a brit mila, or circumcision.

Finally that came together, after many bumps in the road, some of which were right out of Abbot and Costello mixed with Kafka (example: Mishael does not have an ID number because his adoption is not complete yet, adoption can't be completed until conversion is completed. Conversion office were insisting he couldn't have a brit mila without an ID number....).

After the brit mila comes the ritual immersion, the mikveh. The brit mila was in Bat Yam, even though we were living in Jerusalem, because get this, no mohelim (authorized religious surgeons) are currently under contract with the conversion office in Jerusalem. Believe it or now. The mikveh...well, the only mikveh currently serving conversion is in Tsfat. We were actually happy to go to Tsfat, as we know live relatively close (yes, I know, I owe a few blog postings on the move to Galillee -- they will come). Just funny again that that is the only place to go.

Well, we made it there, again after few false starts, and Mishael enjoyed himself in the dunking.

May 26, 2009

In part of my professional life I spend a lot time talking about, and dealing with, virtual stuff. Web sites, avatars, twitter feeds, blogs, etc., lots of virtual/digital stuff.

In my "real" life I am overwhelmed just now by physical stuff. The real kind.

Right now in the process of packing up our "stuff," in advance of our move to the Galil (don't mean to shock loyal readers of this blog, which obviously has Jerusalem in the title...more on this subject in posting to come!).

Only a little bit into the process, and already can't believe how much stuff we actually have. Do we "need" all this stuff? Does it make any sense (environmental, social, physical) for us to keep so much stuff for ourselves? I don't think. Where should the line be in terms of stuff? Not sure. But giving thought to it.

In the meantime, enjoyed these two views on the subject of stuff, the first by the legendary George Carlin (of blessed memory) and the second by Annie Leonard.

January 01, 2009

While we are still processing the bitter reality of having the bulk of our net worth wiped out by Madoff and his helper Merkin, I can say that I am blessed.

While we barely can digest the horror taking place (on all "sides") in the Gaza area (which is getting wider all the time, with rockets falling in Ashdod, Ashkelon, and Be'ersheva), I can say I am blessed.

While we begin 2009 no closer to a peaceful resolution of the Palestinian struggle for independence, I can say that I am blessed.

While our world is racing toward becoming more and more "Hot, Flat, and Crowded" (see Thomas Friedman's book for more on that), I can say that I am blessed.

Where are all these blessings you ask? Well, to my side stands my soulmate Haviva, who I love more than ever (and without her could not fathom facing any of the above). And then I look at our children (Michal, Adin, Meira, Hallel, Nachum, and Mishael. I think of my parents, Don and Esther, and my sister Phyllis and her family, my in-laws Dan and Ruth, Haviva's siblings, and our crazy network of friends all over the world.

We are living in Jerusalem, after 3,000 years of history, playing our part. We are truly blessed. Now lets pray that in 2009 we can put aside the curses of war, greed, jealousy, famine, and poverty and spread blessings of love, peace and prosperity.

October 12, 2008

Not much I can add on a formal VC level to the postings by my VC blogging colleagues Brad Feld and Fred Wilson (definitely read what they have to say). Brad and Fred relate to the current financial crisis by focusing on what early stage start-ups need to do...which is mainly cut costs (and then cut them again) and survive this bleak period. Fred also points out the bit of positive analysis, that unlike 2000/2001 this is not "our" fault (i.e. not Internet entrepreneurs or their backers), but rather a global financial crisis that has its ripple effects across all sectors.

What I want to focus on is how to survive, and take the conversation one step further -- to ultimate entrepreneurial activity.

For me the "ultimate" is when entrepreneurs have no outside funding, when they literally have to work odd jobs, do whatever it takes to put food on the table, while at the same time moving their companies forward. The cleanest version of this would be a start-up that has only been funded to date by "sweat equity." (I will relate in a moment to other situations). When 2,3, or 4 friends come together to start a new venture, the goal should be to get as far as possible without taking outside money. That means keeping your day job[s], whatever it is, and creating something from nothing.

Oh, and besides sweat you might have to fork over some bucks...but not much. There is so much open source out there, free trial services, etc., that pizza money should suffice. And even if you weren't working on a start-up you would need to eat.

The problem in today's start-up culture (certainly in the US and Israel, the markets I know best) is that we have educated entrepreneurs that they need to "raise money." I believe if people are passionate about what they are doing, the goal should be to raise their energy level, and that of their co-founders. Money should be a luxury, a nice-to-have, not a must.

Now, this path is only for the truly driven. Not so good for people with families or other major life commitments. And should be for a specific period of time (anywhere from 6 months to 6 years, depending on your stamina and personal situation). "I don't have time" is the mantra of those who choose not to make time. Sometimes, for good reason-- because you already have children, family, community, that already have received your time pledge. In a time of financial crisis, you probably are not a good candidate for ultimate entrepreneurial activity. That is simply being self-aware.

Now lets look at what happens when you did take in outside money, and now are at a brick wall. You have used up the financing. You want to continue investing sweat equity (your time, which is priceless). Your investors, those who forked over hard cash for a piece of your dream (and did not take salaries) choose not to invest more cash. What happens now? How do you value your time, vis a vis past investors, and what should happen to the cap table? While 99% of the time this is not talked through at the time of investment (and we at Jerusalem Capital are just as guilty), I believe the ethics that should rule is as follows: When someone invests in you (be they formal VC, angel, or family), they are investing in you and your dream. The goal is not to pay you a salary for a few months or years. Salaries are for salaried workers, not for ultimate entrepreneurs. You want a salary, go get a job. Less risk, and sometimes less direct financial reward.

When I invest, it's because I believe in the people, and expect them to whatever is in their power to bring about success (and a return on my hard earned dollars invested in the dream). If there comes a time, when to put food on the table they need to take a day job, so be it, but the moment I come on board, I expect to be treated as a partner.

Now, in formal VC documents and investment agreements, we do speak to situations of next round investors, dilution by new investors, etc. That is the written law (and like most written laws, it is harsh, full of "wipe-outs," "reset rounds," and "death spirals." But then there is the oral law, the law of good faith and integrity. That law demands that everyone involved keep the dream alive, as long there is hope.

Now, if a partner loses all hope, and explicitly gives up, the status qou changes. The cap table should change. But hope should NOT be dependent on whether salaries are being pulled out every month. And hope is very difficult to measure. It's like weighing air. My best advice is to leave nothing unspoken -- talk through where the company is, where it wants to get to, and reach deep down to see who still has hope and can remain committed.

In times like this, hope and commitment are the most important ingredients to potential success. Obviously one cannot run forever on empty, and quite difficult to completely survive on air (most breathatarians don't survive that long).

May our world be blessed with a quick recovery and may none of us need to run on empty or survive on air for longer than absolutely necessary.